A Quick Guide To GST Rates For Various Categories

The Goods and Services Tax (GST) is an Indirect Tax. The introduction of this tax has revolutionized the Indian Taxation System. It is basically a Value Added Tax that is levied on the manufacture, sale, and consumption of goods as well as the services at the national level. It has been one of the essential things that have caught a lot of attention in the market scenario. It is an eye candy in the world on marketing and business.

On 8th of September 2016, the President of India Mr. Pranab Mukherjee, gave an acknowledgment to this Bill, making an Act. Later, this GST Act was passed in Lok Sabha on 29th March 2017, and it came into an effect from 1st on 1st July 2017.

The Government has categorized the GST in 3 parts:

Central– levied by the Union Government on India

State– levied by the Various State Government

Integrated– Levied by the State Government when there is a movement of the goods from one state to another.The GST Rates comprises of the CGST + SGST which is equal or half of the below-given rates.

The GST Rates on Goods are categorized into -0%, 2.5%, 3%, 5%, 12%, 18% and 28%.

Services– No taxes will be imposed on the services like: Hotels and Lodges with tariff below Rs 1000, Grandfathering services have been exempted, Services by the Reserve Bank of India, Service provided by the Public Libraries etc. Rough precious and semi-precious stones come under the tax imposition of 0.25%.

The GST is more of a transparent system. This will gradually wipe out inflation and various provisions like compensation cess. It covers 29 states and 2 union territories and soon will be widely accepted and supported. Just like the demonetization policy, this will also come up in flying colors.

GST is that one slightly expensive bitter pill which is given by the doctor instead of the various pills. Now it is up to you whether you want to go for that one pill or go for many

Want to know more about the Indian Taxation System and GST. Visit Here.